High alcohol consumption has a direct relation to accidents. Bars, restaurants, and taverns are at a constant risk of something terrible happening to them because of people who drink too much and get rowdy or violent.
When things go wrong, the results include property damage, fights, and injuries. That is why bar owners need to understand that they can be held accountable for customers’ actions and injuries due to overdrinking. In 2010 Texas Supreme court held a bar accountable for $1.5 million charges for damages sustained in an incident.
Such businesses need Liquor Liability Insurance to cover legal fees, the medical cost in case of a medical injury, settlements, and property damage by the drunk person.
What Is Liquor Liability Insurance?
Liquor Liability Insurance protects businesses that serve or sell alcohol. A business is liable to pay for the injuries and property damage caused by alcohol consumption.
This insurance covers damages or injuries resulting from bar fights, reckless driving because of being drunk, or damaging property. General Liability Insurance policies don’t cover these types of accidents.
In the majority of US states, Liquor Liability Insurance is required for a business to sell or serve alcohol. If your establishment has a permanent place for alcohol on the menu, you need more than Host Liquor Insurance.
Host Liquor Policy and Special Event Insurance only protect you from alcohol-related incidents at an occasional party.
Who Needs Liquor Liability Insurance?
Anyone who has a distribution channel for alcohol, sells liquor or serves them to customers needs Liquor liability insurance. The prime candidates are:
- Liquor Stores
- Grocery Stores
- Caterers
- Restaurants
- Taverns
- Bars
- Catering Companies
Moreover, if any alcohol-related business is running in the states, Dram shop laws hold you responsible for any damages and injuries caused by the alcohol you serve. Currently, more than 40 states have Dram shop laws.
What’s Covered by Liquor Liability Insurance?
At any fancy party or a regular drinking event, a drunk person can ruin everyone’s experience. Your guest or customers can sue you for the property damages. Liquor liability ensures that you are covered and protected against all allegations and financial claims.
Liquor liability can cover you in the following situations:
Bodily Injuries
When a third person, like a guest at a party or a customer, comes to your bar and over drinks, he or she is not in their senses. They often get into fights with other people, injuring themselves and others.
In such a case, a customer may sue you for their urgent medical bills, such as the cost of a hospital room and ambulance expense. Liquor liability helps you cover these costs.
Property Damage
Alcohol makes people lose their ability to think straight and even lose consciousness. People do some act illogically, such as damaging public property, or they can damage other people’s property within your premises. Liquor Liability Insurance helps you pay for the damages.
Legal Expenses
If a person doesn’t use your assistance for medical bills, they might sue you later. The Liquor Liability Insurance can cover the cost of attorney’s fees, court costs, settlements, and other costs related to the legal process.
Additional Claims
A business can add additional coverage options to the Liquor Liability Policy to protect themselves from any costs related to alcohol-serving and -selling businesses. There is a wide range of claims to secure, such as injuries done by bouncers, coverage in any case of violence, mental health damages, improper use of bar equipment, etc.
Only a business owner knows the real-time issues related to alcohol drinking. They have a free hand to create a suitable Liquor Insurance Policy for their business.
What Liquor Liability Insurance Doesn’t Cover
Apart from the comprehensive coverage benefits, there is something that this insurance policy doesn’t cover:
Underage Drinking
If you serve alcoholic liquors to underage or minors, the damage or injuries they cause or get are not covered by Liquor Liability insurance. These actions can lead to criminal charges and legal actions regardless of the situation. Your employees should be able to carefully read the ID to avoid serving minors with fake IDs.
Damage Done to Your Property
Liquid Liability Insurance covers damages done to third parties, not your personal and business assets. It would be best to have other insurance policies like Personal Insurance to protect your properties.
Non-physical Harm
Liquor Liabilities Insurance does not cover nonphysical damages like slander, libel, and defamation or the consequences of these acts.
Get an Effective Liquor Liability Insurance From John M. Glover Insurance Agency
At John M. Glover, we serve businesses with efficiency. Our policies are designed to cover our clients to the maximum extent, saving them valuable time and money.
You can get Liquor Liability Insurance from us to cover your alcohol-related issues, especially when it has become a requirement in many US states. Visit our website and explore numerous quick options to contact us or get a quote.